Software outsourcing

Friday, July 01, 2005

Software Outsourcing to India

With the booming business of software outsourcing to India, Indian companies are now starting to compete with global service providers like IBM, Accenture, and HP. Indian offshore outsourcing companies are facing the challenge of scaling up their offshore software development center as per client requirements and getting new contracts. With the expertise they have got by providing third party software development services to some of the major service providers, they have gained expertise and experience to compete for the contracts of fortune 500. And with low cost, this has opened the option for fortune 500 companies to consider offshore outsourcing to India.

In their quest for the multinational giants, Indian software outsourcing companies have improved their quality standards tremendously. India has a maximum number of CMMi Level 5 companies than any other country in the world. Indian companies have a clear focus on software outsourcing objectives, understanding the offshoring process, and experience of managing cultural challenges.

With gaining expertise from software outsourcing, Indian companies have now targetted business consulting and R&D work for their clients. Previously only low-end work like programming, designing, and web development was coming to India. But nowadays, Indian companies have started product development and R&D work along with application development. But along with this, the challenge has come to recruit the best suitable minds in technology. Although India is producing more than 3 million college graduates every year, the majority of them are not good enough to work on high-end technology.

Although countries like China are producing a high number of graduates, china is producing around 50,000 engineers every year compared to India’s around 300,000 engineers every year. And although all engineers coming out of college are not good enough, it is considered that overall quality of Indian engineers is very strong. That is why software outsourcing was started to save software development costs. But Indian companies proved that, along with cost, there are many other benefits in software outsourcing.